how do large and small shareholders make money from their stock in a company and is there difference?
In: 2
There’s two main ways.
First, you can buy and sell the shares. Treat them like foreign money, or bitcoin, in an attempt to buy low and sell high. Trade with other people on the stock market, or even the company itself sometimes sells or buys back its own shares.
The second way is that some corporations pay out dividends. Their profits – or rather, what’s accumulated in their bank accounts – get spread out to their shareholders. It depends on the corporation… so do it regularly, some do it when they feel like it, some never ever do it. Even if it happens, it’s spread among the shareholders so it might be a few pennies to a dollar or two per share. But if you hold shares by the thousands, it could be a nice chunk of change.
Latest Answers